TSX closes marginally lower

Published 2025-03-20, 07:01 a/m
© Reuters

Investing.com - Canada’s main stock markets were up-and-down on Thursday but closed slightly lower, suggesting a potential paring back in the average after it logged its biggest advance in seven months in the prior session.

By the 4:00 ET close, the S&P/TSX 60 index fell by 1.7 points or 0.1%, but was consistently fluctuating on a scale between +0.5% and -0.5%.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 9 points or 0.04%, fluctuating similarly after it had jumped by nearly 1.5% on Wednesday, notching its highest closing level since February 28 and its best daily performance since August 8.

Shares in Alimentation Couche-Tard, which is currently involved in a $47 billion bid for Japan’s Seven and i, also rose following the Quebec-based retailer’s quarterly results.

Technology stocks surged, with the sector aided by an 8.3% increase in e-commerce group Shopify, while an uptick in oil prices fueled a rally in energy shares.

U.S. stocks down after Wall Street’s Wednesday advances

U.S. stock indexes were mixed on Thursday but fell lower before the close, handing back some of the previous session’s sharp gains after the Federal Reserve maintained its rate cuts forecast for the year.

On the day, the Dow Jones Industrial Average fell 11.3 points, or 0.03%. Additionally, the S&P 500 dropped 12.4 points, or 0.2%, and the NASDAQ Composite shed 59.1 points, or 0.3%. 

The main Wall Street indexes rose strongly during Wednesday’s session, but all three indexes remained close to six-month lows, as uncertainty over Trump’s tariffs and fears of slowing economic growth sparked a wave of extended selling. 

The Fed chose to leave interest rates unchanged as expected at its latest policy meeting, noting that it will take a cautious approach to future decisions due to uncertainty around President Donald Trump’s tariff plans. Canada has been a particular target of Trump’s levies, sparking retaliatory measures from Ottawa and exacerbating fears over a trade war between the two traditional allies.

Crude helped by U.S. inventories

Oil prices edged higher Thursday, extending a recent rebound on signs of strong demand in the U.S., the world’s biggest fuel consumer.

Crude is recovering after slumping to an over three-year low earlier in March on concerns over sluggish demand, U.S. trade tariffs and increasing supplies. 

U.S. government data, released on Wednesday, showed that crude oil inventories grew more than expected in the past week. But distillate stocks saw an unexpected, outsized draw, far outpacing builds in broader inventories and fuel stocks. 

The distillate draw drummed up hopes that fuel demand in the U.S. remained robust despite signs of a cooling economy.

By 5:10 ET, Crude Oil WTI Futures were up 2.2% to $68.37 a barrel, while Brent Oil Futures closed higher at $72.28 per barrel.

Gold touches record high

Gold prices briefly rose to fresh record highs, benefiting from a softer dollar after the Fed signaled at least two more interest rate cuts this year.

The yellow metal extended a run of recent gains, as it continued to receive a boost from heightened safe haven demand due to the collapse of the Israel-Hamas ceasefire, roller-coaster Russia-Ukraine peace negotiations, and increased uncertainty over the U.S. economy under Trump.

Spot gold had inched down by 0.1% to $3044.73 an ounce by 5:10 ET, after it touched an all-time peak of $3,057.21 an ounce earlier in the session.

(Scott Kanowsky also contributed to this article)

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